Question 1

A charitable contribution deduction is allowed for the FMV of services rendered to a qualified charitable organization.

Accepted Answer

A) True 
 B)False

Question 2

Ted pays $2,100 interest on his automobile loan,$120 interest on a loan to purchase a computer for personal use,$630 interest on credit cards,and $1,100 investment interest expense.Ted has net investment income of $850.Ted's deductible interest is

Accepted Answer

A) $850. 
B) $1,100. 
C) $2,950. 
D) $3,200. 
A) $850. 
B) $1,100. 
C) $2,950. 
D) $3,200.

Question 3

Which of the following is not required substantiation for a noncash charitable contribution?

Accepted Answer

A) name and address of charitable organization 
B) method used to determine the donated property's fair market value 
C) date and location of property donated 
D) use of donation by charitable organization 
A) name and address of charitable organization 
B) method used to determine the donated property's fair market value 
C) date and location of property donated 
D) use of donation by charitable organization

Question 4

The following taxes are deductible as itemized deductions with the exception of

Accepted Answer

A) state income taxes. 
B) federal income taxes. 
C) foreign real property taxes. 
D) local personal property taxes. 
A) state income taxes. 
B) federal income taxes. 
C) foreign real property taxes. 
D) local personal property taxes.

Question 5

Matt paid the following taxes this year: $$\begin{array} { | l | r| } 
\hline \text { Real estate taxes on his own residence } & \$ 3,600 \
\hline \text { State income taxes } & 900 \
\hline \text { Local city income taxes } & 300 \
\hline \text { State salestaxes } & 1,400 \
\hline
\end{array}$$ What is the maximum amount Matt can deduct as an itemized deduction on his tax return?

Accepted Answer

A) $6,200 
B) $5,000 
C) $5,300 
D) $4,800 
A) $6,200 
B) $5,000 
C) $5,300 
D) $4,800

Question 6

If the principal reason for a taxpayer's presence in an institution (e.g.,a nursing home)is the need and availability of medical care,the entire cost of lodging and meals is considered qualified medical expenditures.

Accepted Answer

A) True 
 B)False

Question 7

All of the following statements are true except

Accepted Answer

A) investment interest expense is deductible to the extent of a taxpayer's net investment income. 
B) short-term capital gains meet the definition of net investment income. 
C) investment interest expense includes interest expense to purchase or carry tax-exempt securities. 
D) net investment income is the taxpayer's investment income in excess of investment expenses. 
A) investment interest expense is deductible to the extent of a taxpayer's net investment income. 
B) short-term capital gains meet the definition of net investment income. 
C) investment interest expense includes interest expense to purchase or carry tax-exempt securities. 
D) net investment income is the taxpayer's investment income in excess of investment expenses.

Question 8

In 2018,Mario earned $9,000 in net investment income and incurred $14,000 of investment interest expense.Mario paid off the loan in early 2019,so he only paid $2,000 of investment interest expense in 2019.He earned $10,000 of net investment income in 2019.How much investment interest expense can Mario deduct in 2019?

Accepted Answer

A) $2,000 
B) $10,000 
C) $7,000 
D) $0 
A) $2,000 
B) $10,000 
C) $7,000 
D) $0

Question 9

Don's records contain the following information: 1.Donated stock having a fair market value of $3,600 to a qualified charitable organization.He acquired the stock five months previously at a cost of $2,400.
2)Paid $700 to a church school as a requirement for the enrollment of his daughter.
3)Paid $200 for annual homeowner's association dues.
4)Drove 400 miles in his personal auto.The travel was directly related to volunteer services he performed for his church.
How much can Don deduct as a charitable contribution?

Accepted Answer

A) $2,456 
B) $3,156 
C) $3,356 
D) $3,656 
A) $2,456 
B) $3,156 
C) $3,356 
D) $3,656

Exam 24: Itemized Deductions

A charitable contribution deduction is allowed for the FMV of services rendered to a qualified charitable organization.

Ted pays $2,100 interest on his automobile loan,$120 interest on a loan to purchase a computer for personal use,$630 interest on credit cards,and $1,100 investment interest expense.Ted has net investment income of $850.Ted's deductible interest is

Which of the following is not required substantiation for a noncash charitable contribution?

The following taxes are deductible as itemized deductions with the exception of

Matt paid the following taxes this year: Real estate taxes on his own residence \ 3,600 State income taxes 900 Local city income taxes 300 State salestaxes 1,400 What is the maximum amount Matt can deduct as an itemized deduction on his tax return?

If the principal reason for a taxpayer's presence in an institution (e.g.,a nursing home)is the need and availability of medical care,the entire cost of lodging and meals is considered qualified medical expenditures.

All of the following statements are true except

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